Nortel Pensioners denounce the recent proposed settlement agreement between
Nortel Networks Inc. (US) and the Bondholders
TORONTO, July 31st, 2014 /CNW/ - Nortel Networks Inc. (NNI), the U.S. unit of
defunct Canadian telecom company Nortel Networks Corp., has agreed that
certain bondholders will receive up to approximately $1 billion in interest,
over and above the approximately $3.9 billion of principal and interest on
their bonds as of the date that Nortel commenced insolvency proceedings in
Canada, the U.S., the U.K. and Europe, if NNI is solvent.
This agreement must be approved by the US courts before it is finalized.
The NRPC strongly objects to this proposed settlement as payment of interest
to one group of creditors at the expense of all others in an international
bankruptcy of this magnitude is clearly unacceptable.
If approved by the U.S. Bankruptcy Court, the agreement may dramatically
impact the claims and eventual recovery for Nortel retirees in Canada,
depending on the how the U.S. and Canadian Courts allocate funds from the
lockbox proceeds realized from the sale of Nortel's business units and patents.
Don Sproule, President of the NRPC spoke out:
"This is a cooked up deal among friendly parties that support the vulture
funds, with no support from other creditors, and with total disregard for
Nortel's former Canadian employees who were the primary creators of the bulk
of Nortel's patents which powered the once global company. Nortel's former
Canadian employees deserve far better treatment.
The agreement dramatically increases the difficulty and expense of reaching a
reasonable settlement between parties on allocation of the lockbox funds, does
nothing to encourage any resolution, and fools nobody as to its intent.
We hope that both the U.S. and Canadian Courts see through this sham
arrangement."
Nortel's former Canadian employees remain resolute in their determination to
do all in their power and wait as long as it takes to receive an equitable
share of Nortel's dwindling assets.
SOURCE Nortel Retirees and Former Employees Protection Canada
Don Sproule, President, NRPC, 613-729-9729, sproule.nrpc@gmail.com; Mike
Campbell, Vice President, NRPC, 416-948-8281, michael.campbell@pensioners.ca;
François Meunier, Director, NRPC-Ottawa Region, 613-825-5662,
fmeunier@sympatico.ca; Anne Clark-Stewart, Director, NRPC-Communications,
905-891-8220, anneclark-stewart@pensioners.ca; E-mail:
mediarelations@nortelpensioners.ca; Web site: www.nortelpensioners.ca
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CO: Nortel Retirees and Former Employees Protection Canada
ST: Ontario
NI: FIN LABOR
-0- Jul/31/2014 22:14 GMT